WSP- FINANCIAL MODELING EXAM QUESTIONS AND CORRECT DETAILED / VERIFIED ANSWERS

WSP- FINANCIAL MODELING
EXAM QUESTIONS AND




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CORRECT DETAILED /




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VERIFIED ANSWERS

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YC
D
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, Why do you never want to re-enter the same input more than once in your model? - ANS Bc.
you want your model to be dynamic

Components of a financial statement model? - ANS Income statement
Balance sheet
Statement of cash flows

Both historical results and forecasts




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What colour text should you use for:
Hard-coded inputs
Formulas




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Links to other worksheets
Links to other files
Links to data providers - ANS Hard-coded inputs -> blue




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Formulas -> black
Links to other worksheets -> green
Links to other files -> red
Links to data providers -> dark red
YC
Should you hide rows? - ANS No, grouping is better

Should you merge cells? - ANS No, centering across selection is better

Footnotes vs comments? - ANS Footnotes will show up when model is printed
D

Comments for internal purposes

If you want to delete a worksheet and want to know if there are any links to that worksheet, how
U


can you do this? - ANS Ctrl + F
and then search for the name of the worksheet you want to delete
ST




What documents would you gather prior to starting to model? - ANS Latest annual report and
corresponding 4th quarter press release and earnings call transcript

Latest equity research & EPS consensus estimates

Last 6 months news run (stock splits, acquisitions and other material changes)

For quarterly models and LTM calculations...
-also get latest 3 quarterly reports and corresponding press releases & earnings calls